Question

How much will Chris’s investment account be worth in five years if he invests $5,000 with 2.8% interest?

Answer 1

Answer:

$\ 5,700$

Step-by-step explanation:

we know that

The simple interest formula is equal to

$A=P(1+rt)$

where

A is the Final Investment Value

P is the Principal amount of money to be invested

r is the rate of interest  

t is Number of Time Periods

in this problem we have

$t=5\ years\\ P=\ 5,000\\r=0.028$

substitute in the formula above

$A=\ 5,000(1+0.028*5)$

$A=\ 5,000(1.14)=\ 5,700$